Radiocommunications Act 1989

Mortgages

79: Restriction on exercise of power of sale

You could also call this:

"Rules for selling something you mortgaged if you don't pay or follow the rules"

Illustration for Radiocommunications Act 1989

You have a mortgage on something like management rights or a spectrum licence. If you do not pay the money you owe, or you do not do what you promised in the mortgage, the person you owe money to, called the mortgagee, might want to sell it. The mortgagee must first send you a notice that tells you what you did wrong, how to fix it, and what will happen if you do not fix it, as stated in section 81. You will have at least one month to fix the problem after you get the notice. The notice must be in a special form and tell you important things, such as what you did wrong and what will happen if you do not fix it. If the notice does not tell you these important things, or if it is not fair to you, it might not be valid.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM197133.

This page was last updated on 12 December 2025 — View changes

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78: Rights of mortgagee, or

"What happens if you can't pay back money borrowed to manage radio frequencies"

80: Notice to subsequent mortgagee, or

"Telling other mortgage holders about a mortgage on something you own"

Part 9Mortgages

79Restriction on exercise of power of sale

Subject to section 81, no power conferred by any mortgage to sell any management rights, or to sell or grant any spectrum licence, or to exercise the rights of a rightholder under a spectrum licence, shall become or be deemed to have become exercisable, by reason of any default in the payment of any money secured by any mortgage of any management rights or any spectrum licence, or by reason of any default in the performance or observance of any other covenant expressed or implied in the mortgage, unless and until the mortgagee serves on the mortgagor a notice that complies with the requirements of this section, and (in any case where the default complained of is capable of remedy) the mortgagor fails to remedy the default before the date specified in the notice.
Every such notice shall be in the prescribed form; but no notice shall be void merely because of any variation from the prescribed form unless—
the notice does not adequately inform the mortgagor of—
1. the nature and extent of the default complained of; and
2. the date by which the mortgagor is required to remedy the default (if it is capable of remedy); and
3. the rights that the mortgagee will be entitled to exercise if the default is not remedied within the specified period; and
the variation materially prejudices the interests of the mortgagor.

The date to be specified in the notice shall be not earlier than 1 month from the service of the notice.

Notes

Section 79(1): amended, on 12 October 2001, by section 54 of the Radiocommunications Amendment Act 2000 (2000 No 8).